By Don McClain | Founder & Principal, Medro Advisors The May 12 preferred-equity article introduces a layer between senior debt and common ownership. Before comparing proposals, ask counsel to map distribution priority, whether unpaid returns accrue or compound, consent rights and remedies after a missed obligation. Run the same operating case through each proposed waterfall and identify when common-owner distributions could stop. A stated return alone does not describe the owner's remaining control or cash. Document how the arrangement interacts with senior financing before relying on it. Discuss the proposed capital structure with Fast Commercial Capital. Terms require individual review. FUNDED is forthcoming.
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